Bausch Health Cos (NYSE:BHC) Trading Up 5.1% - Should You Buy?

Key Points

• Bausch Health shares rose 5.1% to about $6.92 in Tuesday trading, although volume was 62% below the stock’s average daily volume.
• Analyst sentiment remains cautious: five analysts rate the stock Hold and two rate it Sell, giving BHC an overall “Reduce” rating and an average price target of $8.00.
• The company beat quarterly expectations, reporting $1.26 in earnings per share versus the $0.96 consensus and revenue of $2.83 billion versus $2.59 billion expected, but it continues to report negative net margins and return on equity.

Bausch Health Cos Inc. (NYSE:BHC - Get Free Report) shares shot up 5.1% during mid-day trading on Tuesday . The company traded as high as $6.93 and last traded at $6.9150. 970,639 shares changed hands during trading, a decline of 62% from the average daily volume of 2,524,552 shares. The stock had previously closed at $6.58.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on BHC. Weiss Ratings upgraded Bausch Health Cos from a "sell (d-)" rating to a "sell (d)" rating in a research note on Friday, July 31st. Jefferies Financial Group upgraded shares of Bausch Health Cos to a "hold" rating in a report on Wednesday, July 22nd. Royal Bank Of Canada lowered their price target on Bausch Health Cos from $10.00 to $9.00 and set a "sector perform" rating for the company in a report on Monday, April 27th. Wall Street Zen raised shares of Bausch Health Cos from a "buy" rating to a "strong-buy" rating in a research note on Saturday, August 1st. Finally, Zacks Research cut Bausch Health Cos from a "hold" rating to a "strong sell" rating in a research note on Friday, July 24th. Five investment analysts have rated the stock with a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Reduce" and an average target price of $8.00.

Bausch Health Cos Stock Up 5.7%

The firm's 50-day moving average is $5.23 and its 200 day moving average is $5.43. The stock has a market cap of $2.60 billion, a price-to-earnings ratio of -2.35 and a beta of 0.38. The company has a debt-to-equity ratio of 54.68, a current ratio of 1.44 and a quick ratio of 1.08.

Bausch Health Cos (NYSE:BHC - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The company reported $1.26 earnings per share for the quarter, beating analysts' consensus estimates of $0.96 by $0.30. The company had revenue of $2.83 billion during the quarter, compared to analysts' expectations of $2.59 billion. Bausch Health Cos had a negative net margin of 10.12% and a negative return on equity of 561.95%. Sell-side analysts anticipate that Bausch Health Cos Inc. will post 4.24 earnings per share for the current fiscal year.

Institutional Trading of Bausch Health Cos

Several institutional investors have recently made changes to their positions in the business. Paulson & CO. Inc. acquired a new stake in shares of Bausch Health Cos in the second quarter valued at approximately $361,151,000. MFN Partners Management LP bought a new stake in Bausch Health Cos during the second quarter worth about $29,580,000,000. Norges Bank acquired a new stake in Bausch Health Cos in the 4th quarter valued at about $25,592,000. MUFG Securities EMEA plc bought a new stake in shares of Bausch Health Cos during the 2nd quarter worth about $22,644,000. Finally, Royal Bank of Canada boosted its position in shares of Bausch Health Cos by 24.9% in the first quarter. Royal Bank of Canada now owns 11,363,498 shares of the company's stock valued at $61,362,000 after acquiring an additional 2,262,894 shares during the period. 78.65% of the stock is currently owned by institutional investors and hedge funds.

About Bausch Health Cos

Bausch Health Cos Inc, formerly known as Valeant Pharmaceuticals International, is a global specialty pharmaceutical company headquartered in Laval, Quebec, Canada. The company operates through two primary segments: Ophthalmology, led by its Bausch + Lomb franchise, and Diversified Brands, which encompasses prescription dermatology, gastrointestinal, neurology and branded pharmaceutical products. Bausch Health develops, manufactures and markets a range of therapeutic and over-the-counter offerings designed to address conditions such as cataracts, dry eye, glaucoma, acne, rosacea, migraine and gastrointestinal disorders.

The Ophthalmology segment under the Bausch + Lomb name provides products for eye health, including prescription drops, contact lens care solutions, intraocular lenses, surgical instruments and diagnostic devices.

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